Discounts & Sales Promotions (Alberta Council)

From SJA

This policy is effective December 01, 2011

Contents 1 The Need 2 Policy 2.1 Purpose 2.2 Scope 2.3 Responsibilities 2.4 References and Related Statements of Policy and Procedure 3 Procedures 3.1 How to Discount in Unity 4 Standard Discounts 4.1 SJA Staff Discount 4.2 SJA Volunteer Discount 4.3 SJA Instructor Discount 4.4 Students Discount 4.5 Group Class Discount 4.6 Contracted Discount 5 Non-Standard Discounts 5.1 Volume Product Discount 5.2 Promotional Sale Discount 5.2.1 Current Promotions 5.3 Attachments

The Need

Selling goods and services requires a blend of marketing and promotional efforts that vary depending upon what is being offered for sale. Many types of promotions such as advertising and direct sales techniques do not involve a price discount. In other cases, a promotion is offered to the purchaser that affects the selling price, or bundles some other product with the item offered for sale. When the promotion offers a price discount to the purchaser, the discount must be treated as a reduction of the selling revenue, rather than a cost of the sale. Strong controls are required over pricing and discounting with clear and consistent policies to ensure that complete information is maintained and that fraud or other losses do not occur.

Policy

Any sales discount or promotion must be properly authorized and accounted for as a reduction of the selling price. When the indicated price includes sales taxes or an interest element, these items must be accounted for separately.

Purpose

This Statement of Policy and Procedure clarifies the accounting treatment for various sales discounts or promotions and provides operational guidance to staff.

Scope

This Statement of Policy and Procedure applies to all St. John Ambulance Alberta Council staff.

Responsibilities

The Administrative, Business Development, Training and Finance departments are responsible for ensuring compliance with this policy.

The Administrative department is responsible for ensuring that:

• Discounts and promotions are properly authorized prior to issuance
• Price adjustments are properly recorded in the point of sale system

The Finance department is responsible for ensuring that:

• Price lists, products, discounts and promotional items are properly set up and maintained in both the point of sale and financial systems
• Discounts and promotions issued have been properly authorized and recorded in the financial system

The Business Development department is responsible for ensuring that:

• All discounts and promotions have been approved by the Provincial Executive Team prior to implementation
• All discounts and promotions have been properly communicated with the other departments prior to publication

The Training department is responsible for ensuring that:

• All private class discounts are properly authorized prior to issuance

References and Related Statements of Policy and Procedure

• SPP FN 1.03 - Sales Contracts (Future Development)
• SPP FN 1.09 - Revenue Recognition (Future Development)
• SPP FN 1.11 - Sales Taxes (Future Development)

Procedures

The following procedures summarize actions to be taken for processing discounts. In the case of a price discount, the revenue for the full retail value of the product or service is recognized at the time of sale and the amount of the discount is recorded in a sales discounts account, which is treated as a reduction of sales revenue.

How to Discount in Unity

When discounting an order in Unity these steps must be taken:

1. Ensure a specific customer or account has been selected

   (Unless it is for a Private Class not yet in Unity then please reference the class number and student name in the comments)

2. Ensure the correct Price List has been selected
3. Enter in the part number of the product, course or service sold at full retail pricing on the Line Detail screen

   (Continue entering any additional line items as necessary)

4. Add a new product line for the discount using the appropriate Discount part number

   Z5030-****** for Course discounts

   Z5035-****** for Product discounts

   (Note you have the option to consolidate similar items into one discount line or separate if desired)

   (****** will be linked to a specific discount code)

5. Enter the quantity of items discounted as a positive number
6. Manually calculate the amount of the discount per item before GST (ex. 25% staff discount on $7.62 is 7.62*0.25 = 1.91)
7. Tab to the "Disc. Price" field and enter the calculated discount amount per item as a negative number (ex. -1.91)
8. Tab to the "Comments" field and enter a detailed reason for discount (ie. buckslips, student discounts, staff discounts, etc...)

   (Repeat discount line items for an order with multiple types of discounts)

If is is necessary to add a GST discount to an order in Unity take these additional steps:

1. Add a new product line for the GST discount using the part number Z2115
2. Manually calculate the amount of the GST discount as 5% of the total discount for those items that have GST (ex. 5% GST calculated on total discount of $238.10 is 238.10*0.05 = 11.91)
3. Tab to the "Disc. Price" field and enter the calculated GST discount as a negative number (ex. -11.91)

Payments:

• If the order has a balance owing then proceed to the payments tab as usual
• If the order has a zero balance owing then do not add a payment or the order will have integration errors

To complete the order complete the following steps:

1. Print a copy of the order for the customer
2. The Administrative Coordinator must initial all discounts prior to posting the integration
3. The Administrative Coordinator will then forward the completed integration package to the Finance Department

Standard Discounts

SJA Staff Discount

Upon authorization of their supervisor, staff may register in the appropriate SJA course(s) based on the level of training required for their position, at no charge. For example, all employees are to have valid Standard First Aid and WHMIS certificates as a minimum level of training required to meet our Certificate of Recognition (COR) requirements. Unity part number Z5030STAFF

For purchase of SJA First Aid Kits, barrier devices, and SJA course offerings beyond their position requirements, staff are provided a 25% discount. Unity part number Z5035STAFF

Note that this discount does not apply to family or friends.

SJA Volunteer Discount

Upon approval of a volunteer’s application and authorization of the local Community Services Coordinator, arrangements will be made to enroll volunteers in the appropriate SJA course based on the level of training required for the Volunteer Program they are registered in (example: MFR, WHMIS), at no charge. Unity part number Z5030VOLUNTEER

For purchase of SJA First Aid Kits, barrier devices, and SJA course offerings beyond their position requirements, volunteers are provided a 25% discount. Unity part number Z5035VOLUNTEER

Note that this discount does not apply to family or friends.

SJA Instructor Discount

Instructors qualify for a 25% discount on SJA First Aid Kits, barrier devices, and SJA courses. A nominal fee may apply to additional qualification instructor workshops to which the 25% discount does not apply.

• Course discount Unity part number Z5030INSTRUCT
• Product discount Unity part number Z5035INSTRUCT

Note that this discount does not apply to family or friends.

Students Discount

Students attending any SJA course are provided a 10% discount on First Aid kits and barrier devices on the day(s) of their course. Unity part number Z5035STUDENT

Group Class Discount

Group discounting is dependent on group size as reflected on the current Group Discount Pricing Sheet located under the "S:/Finance/Price Lists/" directory. Any discount outside of the approved structure must be approved in advance of any courses by the Business Development Department. Unity part number Z5030GROUP

Contracted Discount

Contracted discounts are company specific and attached to an account in Unity. A current listing of all contracted "National & Provincial Accounts" is located under the "S:\BusinessDevelopment\National Provincial Accounts" directory. Any discount outside of the approved structure must be approved in advance of any courses by the Business Development Department.

• Course discount Unity part number Z5030CONTRACT
• Product discount Unity part number Z5035CONTRACT

Non-Standard Discounts

Volume Product Discount

Volume product discounts are dependent upon quantity purchased and must be pre-approved by the Business Development Department. Unity part number Z5035

Promotional Sale Discount

Random promotional programs advertised throughout the year will offer special pricing dependent upon the event. These events will be pre-approved by the Business Development Department and/or the Provincial Executive Team. These discounts will be advertised and staff will be notified of these special types of promotional discounts including any specific part numbers used to track these discounts.

Current Promotions

• Boxing Week Blowout - This promotion provides a 25% discount on all in stock first aid kits except emergency preparedness kits. This promotion is active from December 1, 2011 to December 22, 2011. Unity part number Z5035BOXING

• Edmonton Police Service Program - This promotion provides a 10% discount on SFA courses based to all Edmonton Police Recruits. This promotion is active from September 2011 to August 2012. Unity part number Z5030EPS

• Hockey Alberta Kit Discount - This promotion provides a 25% discount on sport, family and hockey first aid kits to all Minor Hockey Associations in Alberta. This promotion is active from August to March each year. Unity part number Z5035HOCKEY

• Hockey Alberta Course Discount - This promotion provides a 10% discount on EFA and SFA courses to all Minor Hockey Associations in Alberta. This promotion is active from August to March each year. Unity part number Z5030HOCKEY

• Sponsor a Sitter Program - This promotion provides a sliding discount on courses based on assessed need of the students. At the time of booking a promotional code will be provided to confirm the discount amount. This promotion is active for July and August 2011. Unity part number Z5030SITTER

• Pay it Forward - This promotion provides a 10% discount on first aid and CPR training courses for students registered by June 30, 2012. This promotion is active from May 1 through to June 30, 2012. The participant code is to be supplied by the registrant and entered into the comments field. Unity part number Z5030PAYIT

Attachments

The discount price sheet is located on the S drive at S:\CentreAdministration\Discounts\discount_price_sheet.pdf